The FAO released today the FAO Food Price Index for May 2011, a key indicator of changes in the internatioanl prices of food commodities.
At 232 points, the FAO Food Price Index was down 1 percent from the revised estimate of 235 points in April and 37 percent higher than in May 2010.
Declines in international prices of cereals and sugar were responsible for the slight decrease in the May average value of the index;more than offsetting increases in meat and dairy prices with oils largely unchanged.
The FAO Food Price Index has been hovering above 231 points since the start of the year and hit its all time high of 238 points in February 2011.
The FAO Cereal Price Index averaged 262 points in May, down 1 percent from April but 69 percent higher than in May 2010. In spite of unfavourable weather negatively influencing crop prospects in Europe and North America, grain prices averaged lower in May. Expectation of large exportable supplies in the Russian Federation and Ukraine coupled with stronger US Dollar and weaker oil prices also put downward pressure on prices.
The FAO Oils/Fats Price Index remained unchanged in May, at 259 points. While international soybean oil prices decreased slightly thanks to larger than expected soy supplies in Latin America, palm oil prices stayed firm despite rising production in Southeast Asia. Overall, the index remains historically high and up 52 percent from May 2010, reflecting the current tightness of supply and demand, which the market does not expect will end soon.
The FAO Meat Price Index Index averaged 183 points in May, slightly above the revised April value of 181, but 10 percent more than in January. Since February, the index has been hitting new highs every month, sustained by record beef and sheep prices, but also firming poultry and pigmeat quotations.
The FAO Dairy Price Index averaged 231 points in May, up slightly from April. Dairy prices rose very fast from September 2010 to March 2011, reflecting supply constraints and rebounding import demand. Prices of the major dairy products changed little compared with April, with the exception of cheese which gained 2 percent.
The FAO Sugar Price Index averaged nearly 311 points, down 10 percent from April and 26 percent below its January record. The recent decline was prompted by prospects of increased market availability, as the new crushing season begins in Brazil, and larger than anticipated production in Thailand. However, strong short-term demand led international sugar prices to level off somewhat in the last week of May.
At 232 points, the FAO Food Price Index was down 1 percent from the revised estimate of 235 points in April and 37 percent higher than in May 2010.
Declines in international prices of cereals and sugar were responsible for the slight decrease in the May average value of the index;more than offsetting increases in meat and dairy prices with oils largely unchanged.
The FAO Food Price Index has been hovering above 231 points since the start of the year and hit its all time high of 238 points in February 2011.
The FAO Cereal Price Index averaged 262 points in May, down 1 percent from April but 69 percent higher than in May 2010. In spite of unfavourable weather negatively influencing crop prospects in Europe and North America, grain prices averaged lower in May. Expectation of large exportable supplies in the Russian Federation and Ukraine coupled with stronger US Dollar and weaker oil prices also put downward pressure on prices.
The FAO Oils/Fats Price Index remained unchanged in May, at 259 points. While international soybean oil prices decreased slightly thanks to larger than expected soy supplies in Latin America, palm oil prices stayed firm despite rising production in Southeast Asia. Overall, the index remains historically high and up 52 percent from May 2010, reflecting the current tightness of supply and demand, which the market does not expect will end soon.
The FAO Meat Price Index Index averaged 183 points in May, slightly above the revised April value of 181, but 10 percent more than in January. Since February, the index has been hitting new highs every month, sustained by record beef and sheep prices, but also firming poultry and pigmeat quotations.
The FAO Dairy Price Index averaged 231 points in May, up slightly from April. Dairy prices rose very fast from September 2010 to March 2011, reflecting supply constraints and rebounding import demand. Prices of the major dairy products changed little compared with April, with the exception of cheese which gained 2 percent.
The FAO Sugar Price Index averaged nearly 311 points, down 10 percent from April and 26 percent below its January record. The recent decline was prompted by prospects of increased market availability, as the new crushing season begins in Brazil, and larger than anticipated production in Thailand. However, strong short-term demand led international sugar prices to level off somewhat in the last week of May.
